What do Microsoft, AWS, and Cloudflare have in common? All these services are subscription based and allows users to avail services after signup and payment for a specified time period.
While SaaS includes all the hosted applications, PaaS includes development tools, database management, and business analytics, IaaS includes operating systems, servers and storage, networking firewalls/security, and data center physical plant/building.
The most used Gmail, Calendar for booking schedules, Microsoft Office Suite for writing (MS Word), publishing (MS Publisher), making presentations (MS Powerpoint), calculating and making databases (MS Access), sorting emails (MS Outlook) and making notes (MS OneNote) ;
This blog provides a comprehensive overview of SaaS and its role in modern business environments. Let’s have a look:
What is SaaS?
Software as a service (SaaS) is a cloud service model that allows users to avail software services over the internet. Application do not need to be installed. It can be accessed from remote servers by simply registering and logging into the account. Only authorized users get to access the applications. Some applications like Gmail are free, but they cap their storage limit to 15 GB, beyond which users have to pay some money and get extra storage via Google One account.
Overall, SaaS is a complete software solution - that is built on-demand, and used on demand. It workds on a pay-as-you-go model from some designated cloud service provider (host). Orgaizations have to request access for their employees in bulk, rent the use of the app for their organization. Then users can connect to it over the internet, usually via web browser. All the (1) underwired software, (2) hardware, and (3) all adjoining infrastructure (middleware), or (4) app software, and (5) app data are located in the service provider's data center.
The cloud service provider (host) who offers software services on demand is responsible for managing all hardware and software. They work within certain service agreements to ensure the availability and the security of the app and the data. The SaaS Business model enables organizations to quickly get up and running with an app at minimal upfront cost.
How does SaaS work?
SaaS vendors typically host applications and data on their own servers or use those of a third-party cloud provider, and then manage the platform, operating system, and middleware.
A user needs to sign up to the SaaS application, after which they get to use, once the cloud provider grants them access.
What are the common use cases (applications) of SaaS?
We understand that applications that are accessed over the internet come under this category. But SaaS apps can be of various types like (1) Customer relationship management (CRM), (2) enterprise resource planning (ERP), (3) Document management. Users have to pay to use apps on a subscription basis, or according to the level of use.
How Is SaaS Implemented?
Software as a Service (SaaS) product development process involves (1) validating the idea, (2) defining product vision and strategy, (3) setting goals and objectives, (4) selecting roadmap format, (5) creating initiatives, (6) prioritizing initiatives, (7) adding ideas to initiatives, (8) reviewing and adjusting and (9) publishing and communicating. Other steps in implementing SaaS software are (1) market research, (2) Defining product scope, (3) Design and development, (4) Infrastructure setup, (5) Testing and quality assurance.
SaaS products primarily cater to B2B, B2C markets or both. Some industries like medical and insurance have a requirement of vertical SaaS products. Examples of common SaaS applications are: (1) Email, (2) Calendaring, (3) Office tools, (4) Salesforce, (5) Donorbox, (6) Slack, (7) Buffer, (8) Google Docs, (9) Dropbox, (10) Zoom, (11) Shopify, and (12) YouTube Red.
SaaS cloud provider hosts applications and makes them available to clients, over the internet. A software companyhosts the app using its own servers, databases, networking and computing resources or it may be an ISV that contracts a cloud provider to host the app in the provider’s data center.
Steps in the SaaS product development process
● MVP: Develop a minimal viable product, which is a near-replica of a fully functional application.
● Market Research: Identify target customers, market segments, industry, and competitors.
● Development Team: Secure skilled team who can develop high-quality SaaS solutions.
● Build a Development Plan according to the budget and functionality required.
● Designing attractive user interfaces that are build upon smooth and intuitive user experiences.
● Develop prototypes to test concepts and usability on real users.
● Develop a SaaS marketing plan to give a clear idea about the brand, convert them, and keep them hooked.
What are the benefits of SaaS App Development?
SaaS development offers several advantages like their compatibility on any device over the internet 24*7. These do not require any installation, equipment updates, or traditional licensing management. SaaS apps are affordable, and organizations can avail corporate discount while buying in bulk. Some SaaS companies offer “freemium” versions of their applications with limited features, which sometimes require clicking on advertisements to make them work.
Disadvantages of Implementing SaaS
Sometimes data stored on external servers is unsafe and cannot be accessed by unauthorized parties. Slow internet connections can reduce performance, if cloud servers are accessed from far distance. Sometimes connection might be lost due to any reason - power cut, slow internet, hardware problem, software virus, networking routing issues, or some other reason. SaaS apps are basic, and less flexible. They come with set - predefined features that do not leave the scope for customization. Customers must migrate very large amounts of data when switching vendors.
Conclusive
According to Kellton, the SaaS industry is moving towards customer-centricity in 2024, with more scalable solutions that meet the needs of different user groups. SaaS companies will use analytics and segmentation to better understand their customers and create tailored solutions. AI and ML will grow exponentially. The rise of low-code and no-code platforms, which allow users to create applications without writing code. SaaS has a heightened focus on security and user-centric product management.
The popularity of vertical SaaS is rising. The use of Blockchain applications will increase incrementally. Besides this SaaS development companies also needs to consider (1) hyper personalization, security, (2) data as a service migration to PaaS, (3) SaaS market consolidation, (4) SaaS superapps, (5) PaaS for enhanced connectivity, (6) New pricing strategies amidst increase in cost, (7) growing need for API connections.
SaaS product development process must also include: (1) Double-checking the idea, (2) Discussing the basic SaaS requirements, (3) Defining the technical specifications, and (4) Organizing the workflow.
